Strong foundations

In 2019-20, we retained excellent credit ratings of A+ with Standard & Poor’s and A2 with Moody’s and we hold the highest ratings from the Regulator of Social Housing for both viability (V1) and governance (G1).

We are here for the long term. We’re not distributing resources to shareholders – we’re reinvesting them in our social purpose.

We’ve had a strong year - with a turnover of £411.2m, up £9.1m largely thanks to an increase in receipts from shared ownership first tranche sales of £20.6m to £75.8m. With an operational surplus of £135.9m and housing properties with a market value of £11.9bn, our financial and operational performance remains positive. We generated a surplus of £79.3m in 2019-20, despite the impact of Covid-19, every penny of which will be ploughed back into the business. We’ll continue to invest in our homes and services, as well as raising additional funding from the financial markets to build much-needed new homes.

Our liquidity position was further improved with the issuance of £125m retained bonds in April 2020 and by securing access to a £175m Bank of England Covid Corporate Financing Facility (CCFF) agreed in May 2020.

A strong surplus enables us to invest in the things that matter – more homes, better places, and the safety of our buildings. In fact, our investment and commitment to building new homes and improving our existing ones approached £0.5bn: we invested £368m in building nearly 1,800 new homes, 96% for affordable tenures, and £109m was spent on maintaining and improving our existing properties.

An £8.6m decrease in non-social housing costs is a result of bringing all of our property maintenance services in-house, ending external maintenance contracts.

Our operating costs increased by £13.5m to £216.1m as we continue to invest in our people and the modernisation of our workspaces, as we replace our number of high number of legacy offices with centrally-located operational hubs. Covid-19 has accelerated the adoption of flexible and agile working practices, and a focus on technology means that we are ever-more connected and responsive.